The impact of price transparency on consumers and providers: A scoping review. Issue 8 (August 2020) - Zhang, Angela
Highlights: Consumer use of price transparency tools remain low. Price-aware consumers alter their choice of healthcare provider and receive lower-cost services. Price transparency decreases provider insurer-negotiated prices, but not provider list prices. Price transparency translates to savings for insurers through lower prices paid. Price transparency does not lower aggregate spending due to low consumer usage. Abstract: Escalating levels of healthcare spending and price variation in the healthcare market have driven government and insurer interest in price transparency tools that are intended to help consumers shop for services and reduce overall healthcare spending. However, it is unclear whether the objectives of price transparency are being achieved. We conducted a scoping review to synthesize the impact of price transparency on consumer, provider, and purchaser behaviours and outcomes. Price transparency tools had weak impact overall on consumers due to low uptake, and mixed effects on providers. Price-aware patients chose less costly services that led to out-of-pocket cost savings and savings for health insurers; however, these savings did not translate into reductions in aggregate healthcare spending. Disclosure of list prices had no effect, however disclosure of negotiated prices prompted supply-side competition which led to decreases in prices for shoppable services.